Lafayette Square Mall owner delays reopening, developing much bigger plan
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The owner of Lafayette Square Mall no longer expects the property to reopen this summer and is now planning to unveil an expanded redevelopment concept for the shopping center and surrounding real estate later this year.
Sojos Capital principal Fabio de la Cruz—who introduced an ambitious $200 million project for the northwest-side property in November 2021—has since gone back to the drawing board for the mall and other real estate under his control in the International Marketplace area, reconsidering both the development’s scale and its components.
Construction on the mall, which forced more than four dozen tenants to vacate the property one year ago, was originally expected to be completed by late November 2022. Construction costs and labor shortages later delayed the reopening schedule to this year, by the end of the summer.
While much of the work has been completed—including new roofing, new lighting, upgraded HVAC systems and extensive electrical work—design-focused work has been stalled for three months, with the the property’s closure expected to continue through at least mid-2024.
The reimagined master plan, which is expected to be shared publicly by year’s end, will require much more investment than originally anticipated, de la Cruz told IBJ. It will also involve multiple development partners alongside Sojos Capital.
“This is going to be a bigger project, and we’ve changed the aesthetics and designs for the mall itself based on” this new idea, he said. “The whole development of the neighborhood, and everything involved in this plan, is substantial … I don’t see it costing less than $1 billion.”
But because plans are not yet finalized, de la Cruz is staying quiet on what specifically the updated master plan will entail—or when details will be shared with the public. He also declined to share the identities of the three development partners that have already been brought in to the project, because those agreements have not yet been finalized. More partners are expected to be brought in, and some will have an opportunity to acquire the land they develop, he said.
De la Cruz said the move to a new master plan stemmed from “barriers and opportunities” uncovered in trying to implement the original concepts. He did not elaborate because he didn’t want to share details of the new master plan until it has been finalized.
“There were way more opportunities in the neighborhood than we found [originally] that really make sense for us to move ahead with this change,” he said. “I’m 100% sure this is the right move.”
Initial plans called for the mall to be recast as a mixed-use property called Window to the World, featuring a hotel, apartments, event space shopping and restaurants. Other parts of the Lafayette Road area have also been expected to get upgrades, with additions like a movie theater, a youth sports complex, more regional and national retail tenants throughout the neighborhood, improved infrastructure and a park and public trail system.
So far, one component of the existing master plan has been completed: a new headquarters for the Indianapolis Metropolitan Police Department Northwest District at 4005 Office Plaza Blvd.. Several properties in the area—most of them smaller retail centers—have also been repainted and had new exterior lighting installed along with repaved parking lots. De la Cruz declined to share how much has been invested so far in the project, but told IBJ last June that he had spent about $50 million to that point.
The first master plan was set to be completed in phases, extending into 2026. De la Cruz said the new plan will also be broken into phases, but those have not been finalized.
Last year, Sojos Capital opened a temporary space for existing mall tenants to work from. That space has since been vacated, and the only remaining tenant in the mall is Shoppers World. De la Cruz said mall representatives worked with interested tenants to help them find new retail spaces, also informing them of work on a new master plan.
Once design plans have been set later this year, work inside the mall will resume, lasting at least six months. But most of the tenants that were originally at the mall are unlikely to return, he said.
“The likelihood that some of the tenants that we had at the mall before, come back is really low based on what we’re doing now,” he said, indicating there’s an emphasis being placed on attracting a mix of well-known local, regional and national brands to the site.
De la Cruz has not yet approached the city with a formal request for incentives, but said he has been in talks with them about the reimagined master plan.
“The city so far has said that they fully support what we’re doing,” he said.
Sojos Capital affiliate Perez Realty Group acquired the mall in 2020 from a New York-based firm for about $20 million.
The 1.2-million-square-foot mall on the northeast corner of Lafayette Road and 38th Street was the third-largest shopping center in the Indianapolis area, trailing Castleton Square Mall and Greenwood Park Mall. Built by late developer Edward J. DeBartolo Sr., the mall opened in April 1968 as the first enclosed shopping center in the Indianapolis area.